How Do the Invesco KBW Bank ETF (KBWB) and the State Street Regional Banking Fund ETF (KRE) Compare With Each Other?
KBWB's concentrated portfolio of 26 major banks delivered 14.7% returns over one year, while KRE's broader 167-holding approach yielded 12.5%.
The State Street SPDR S&P Regional Banking ETF (KRE) and Invesco KBW Bank ETF (KBWB) are two distinct ways to invest in the banking sector, with each fund taking a different approach. The State Street fund (KRE) targets smaller regional banks, while the Invesco fund (KBWB) concentrates on larger national institutions.
KRE offers exposure to 167 smaller lenders, allowing investors to capture the broader regional banking industry. In contrast, KBWB provides highly concentrated exposure to just 26 heavyweight banks that dominate the American financial landscape.
When comparing the two funds, beta measures price volatility relative to the S&P 500. The 1-year return represents total return over the trailing 12 months, while dividend yield is the trailing-12-month distribution yield.
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